After a volatile month of July, a review of the the decline from 192.2 has not yet proven itself. One could come to the conclusion that this market remains under pressure and you would probably be correct in your assessment. To what extent?
If the pressure truly remains to the downside and 150.10 will be surrendered, price action over the next two trading days must exhibit the personality of a third wave move.
From the 240 min chart, I have labeled what type of price action represents a third wave move AND what would not constitute one. In a third wave, we should see several days of heavy selling as price extends to the downside in long bars. This would bolster my labeling and my interpretation offered in my personal trade plan.You can read more about that trade plan at : Elliott Wave Live: Coffee Anyone?
If we don't start seeing this market extend and see what I have described as "Not This", the possibility exists that either the bottom is already in or a more complex corrective move may be unfolding.
In conclusion, the correct use of Elliott Wave balances price with wave personality (structure). So make sure that you apply the applicable rule of wave personality to your wave labeling efforts. You'll see better results!
I hope you found this education tip helpful and...
Best of Trading
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